Future Group Project

CHAPTER 1: INTRODUCTION

1.1. GENERAL INTRODUCTION

New Delhi Institute of Management Studies, New Delhi 1

Retail Industry:

Retailing is one of the pillars of the economy in India and accounts

for 13% of GDP. The retail industry is divided into organised and unorganised

sectors. Over 12 million outlets operate in the country and only 4% of them

being larger than 500 sq ft (46 m2) in size. Organised retailing refers to trading

activities undertaken by licensed retailers, that is, those who are registered for

sales tax, income tax, etc. These include the corporate-

backed hypermarkets and retail chains, and also the privately owned large retail

businesses. Unorganised retailing, on the other hand, refers to the traditional

formats of low-cost retailing, for example, the local kirana shops, owner

manned general stores, paan/beedi shops, convenience stores, hand cart and

pavement vendors, etc.

Most Indian shopping takes place in open markets and millions of

independent grocery shops called kirana. Organized retail such supermarkets

accounts for just 4% of the market as of 2008. Regulations prevent most foreign

investment in retailing. Moreover, over thirty regulations such as "signboard

licences" and "anti-hoarding measures" may have to be complied before a store

can open doors. There are taxes for moving goods to states, from states, and

even within states.

FURURE GROUP’S INITIATIVE


KISHORE BIYANI’S: New Faces of Indian retail

He is CEO, FUTURE GROUP, which caterer to the entire Indian

Consumption Space.

Born in a middle class Marwari family. Kishor Biyani began his career

selling stone wash fabric to small shops in Mumbai.

Till 1997, He was just a manufacturer of Branded Garments. The high

Distribution Cost however pushed him towarding retailing where he

devised new formulas of Success.

After completing his Graduation in Commerce, Biyani joined the family Textile

Business. Five years later, he launched the first branded trousers called

PANTALOON, marketed through the Pantaloon Shopee.

Pantaloon entered modern retain in 1997, with the opening of a chain of

Departmental Stores.

In 2001, Biyani evolved a Pan India Model- “Big Bazaar”, a Hyper Market

Chain. (Leading to the democratilisation of shopping in India, with Food

Bazaar. Super Market Chain, he blended the cook, touch and feel of

Indian Bazaar with western hygiene and it has new evolved into the

favoured destination for Indian Homemakers.)

“Rewrite Rules, Retain Values”.

1.2. INDUSTRY PROFILE


The word “Retail” originates from a French Italian word. Retailer- someone who cuts off or shades a small piece from something. Retailing is the set activities that markets product or services to final consumer for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplies them to customer on a relatively small scale. Retailer is a Person or Agency or Agent Or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End user or Ultimate Consumer.

Indian retail industry is the largest industry in India, with an employment around 8% and contributing to over 10% of the country GDP. Retail industry in India is expected to rise 25%yearly being driven by strong income growth, changing lifestyles and favorable demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175-200 billion. Indian Retail Industry is one of the fastest growing industries with revenue expected in 2012 to amount US $ 500 billion and is increasing at a rate of 5% yearly. A further increase of 10-12% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount US$ 25.5 billion by further 2012 from the current size of US$ 8.5 billion.

Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact there are multi-stored malls, huge shopping centers, and sprawling complexes which offers Food, Shopping, and entertainment all under the same roof.

In India Retailing Industry, food is the most dominating sector and is growing at a rate of 11% annually. The branded food industry is trying to enter the Indian Retail Industry and convert Indian consumers to branded food. Since at present 70% of the Indian grocery basket consist of non branded items.


Indian Retail Industry is progressing well and for this to continue retailers as well as Indian government will have to make a combined effort. Indian retailing industry has been phenomenal growth in the last five years. Organized retailing has finally emerged from the shadow of unorganized retailing and is contributing significantly to the growth of Indian retail sector. The “Indian retail Sector Analysis report helps clients to analyse the opportunities and factor critical to the success of retail industry in India.

Indian retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of retail in US and India shows a wide gap between the two countries. Through retailing in India is undergoing an exponential growth, the road ahead is full of challenges.

1.2. a ORIGIN AND DEVELOPMENT

Big Bazaar is a chain of department stores in India, currently with 300+ outlets. It is owned by the Future Value Retail Ltd. Future Group. It works on the same economy model as Wall-Mart and has considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur CEO of Future Group. Currently Big Bazaar store are located only in India. It is the biggest and the fastest growing chain of departmental stores and aims at being 450 stores by the end of 2011.

Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition of the Indian customers. Big Bazaar is founded by Kishore Biyani.

At Big Bazaar, you will definitely get the best products at the best prices-that’s what we guarantee. With the ever increasing array of private levels, it has opened the doors in to the world of fashion and merchandise including home furnishing, utensils, crockery, cutlery, sports goods and much


more at prices that will surprise you. Big Bazaar plans to add much more to complete your shopping experience.

Future Value Retail (India) Limited is India’s leading retailer that operates multiple retails format in both the values and lifestyle segment of the Indian consumer market. Headquarter in Mumbai (Bombay), the company operates over 8 million sq. feet of retail space, has over 1100 stores across 51 cities in India and employees over 30,000 people.

The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaar with aspect of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls, some of its other format include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all Top 10 Bazaar and Star and Sitars. The company also operates an online portal www.futurebazaar.com.

A subsidiary company, Home Solution Retail Limited, operates Home Town, a large-format home solution store, selling home furniture products and e-zone focused on catering to the consumer electronics segment.

Future Group Companies includes Future Capital Holdings, Future Generali, India’s League Clothing and galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. future Capital Holdings, the groups Capital arms, focuses on asset management and Consumer Credit.


http://www.futurebazaar.com/

1.2.b GROWTH AND PRESENT STATUS :

The organized retail market is growing at 35 percent annually while

growth of unorganized retail sector is pegged at 6 percent. The Retail Business

in India is currently at the point of inflection. Rapid change with investments to

the tune of US $ 25 billion is being planned by several Indian and multinational

companies in the next 5 years. India has topped the A.T. Kearney’s annual

Global Retail Development Index (GRDI) for the third consecutive year,

maintaining its position as the most attractive market for retail investment. The

Indian economy has registered a growth of 8% for 2007. The prediction for 2008

is 7.9%. The enormous growth of the retail industry has created a huge demand

for real estate. Property developers are creating retail real estate at an

aggressive pace and by 2010, 300 malls are estimated to be operational in the

country.

With over 1,000 hypermarkets and 3,000 supermarkets projected to come

up by 2011, India will need additional retail space of 700,000,000 sq ft

(65,000,000 m2) as compared to today. Current projections on

Construction point to a supply of just 200,000,000 sq ft (19,000,000 m2), leaving

a gap of 500,000,000 sq ft (46,000,000 m2) that needs to be filled, at a cost of

US$15–18 billion.

According to the Icrier report, the retail business in India is estimated to

grow at 13% from $322 billion in 2006-07 to $590 billion in 2011-12. The

unorganized retail sector is expected to grow at about 10% per annum with

sales expected to rise from $ 309 billion in 2006-07 to $ 496 billion in 2011-12.


1.2.c FUTURE OF THE COMPANY:-

Indian market has high complexities in terms of a wide geographic spread

and distinct consumer preferences varying by each region necessitating a need

for localization even within the geographic zones. India has highest number of

outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft

(0.19 m2)/ person is lowest in the world Indian retail density of 6 percent is

highest in the world. 1.8 million Households in India have an annual income of

over 45 lakhs.

Delving further into consumer buying habits, purchase decisions can be

separated into two categories: status-oriented and indulgence-oriented.

CTVs/LCDs, refrigerators, washing machines, dishwashers, microwave ovens and

DVD players fall in the status category. Indulgence-oriented products include

plasma TVs, state-of-the-art home theatre systems, iPods, high-end digital

cameras, camcorders, and gaming consoles. Consumers in the status category

buy because they need to maintain a position in their social group. Indulgence-

oriented buying happens with those who want to enjoy life better with products

that meet their requirements. When it comes to the festival shopping season, it

is primarily the status-oriented segment that contributes largely to the retailer’s

cash register.

While India presents a large market opportunity given the number and

increasing purchasing power of consumers, there are significant challenges as

well given that over 90% of trade is conducted through independent local

stores. Challenges include: Geographically dispersed Population, small ticket


http://en.wikipedia.org/wiki/File:Indian_Rupee_symbol.svg

sizes, complex distribution network, and little use of IT systems, limitations of

mass media and existence of counterfeit goods.


CHAPTER 2: PROFILE OF THE COMPANY


2. PROFILE OF THE COMPANY

Our Strength and Our Values

Adaptability: To be Flexible and Adoptable, to meet the Challenges.

Respect and Humility: To be Open and Receptive to new ideas,

knowledge and information.

Leadership: To be a leader, both in Thought and Business.

Introspection: Leading to Purposeful Thinking.

Simplicity and Positivity: Simplicity and Positivity in our Thought, Business

and Action.

Valuing and Nuturing Relationship: To build Long term Relationship.

Openness: To be Open and Receptive to new ideas, knowledge and

information.

Flow: To Respect and Understand the Universal law of Nature.


2.1. ORIGIN OF FUTURE GROUP

Big Bazaar is a chain of department stores in India, currently with 300+ outlets. It is owned by the Future Value Retail Ltd. Future Group. It works on the same economy model as Wall-Mart and has considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur CEO of Future Group. Currently Big Bazaar store are located only in India. It is the biggest and the fastest growing chain of departmental stores and aims at being 450 stores by the end of 2011.

Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition of the Indian customers. Big Bazaar is founded by Kishore Biyani.

At Big Bazaar, you will definitely get the best products at the best prices-that’s what we guarantee. With the ever increasing array of private levels, it has opened the doors in to the world of fashion and merchandise including home furnishing, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. Big Bazaar plans to add much more to complete your shopping experience.

Future Value Retail (India) Limited is India’s leading retailer that operates multiple retails format in both the values and lifestyle segment of the Indian consumer market. Headquarter in Mumbai (Bombay), the company operates over 8 million sq. feet of retail space, has over 1100 stores across 51 cities in India and employees over 30,000 people.

The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaar with aspect of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls, some of its other format include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all Top 10 Bazaar and Star and Sitars. The company also operates an online portal www.futurebazaar.com.


http://www.futurebazaar.com/

A subsidiary company, Home Solution Retail Limited, operates Home Town, a large-format home solution store, selling home furniture products and e-zone focused on catering to the consumer electronics segment.

Future Group Companies includes Future Capital Holdings, Future Generali,

India’s League Clothing and galaxy Entertainment that manages Sports Bar,

Brew Bar and Bowling Co. future Capital Holdings, the groups Capital arms,

focuses on asset management and Consumer Credit.

2.2. GROWTH AND DEVELOPMENT OF FUTURE GROUP

Future group led by its founder and Group CEO, Mr. Kishore Biyani,

operates some of India’s most popular retail formats that include…

FUTURE SUPPLY CHAIN

FUTURE MONEY

FUTURE GENERALI

PANTALOON


PLANET SPORT

BIG BAZAAR

HOME TOWN

FUTURE CENTRAL.

ONE MOBILE

FOOD BAZAAR

EZONE

While retail forms the core business activity of Future Group, the group

has developed significant presence in consumer finance, capital, insurance,

brand development, retail media and logistics. The group’s retail formats bring

in around 250 million customer footfalls every year and provide a platform for

over 30,000 small, medium and large entrepreneurs in India to sell their


products and services to these customers. The group has a retail presence in 85

cities and 65 rural destinations and employs over 35,000 people directly.

The group’s flagship enterprise, Pantaloon Retail India Limited was

founded in 1987 and is listed in the Bombay Stock Exchange and National Stock

Exchange since 1991. The company along with its subsidiaries operates around

16 million square feet of retail space in the country. Other group companies

include, Future Capital Holdings, a financial services company, Future Ventures,

engaged in operating and investing in allied businesses, Future Supply Chain

Limited which operates a nation-wide logistics and warehousing network,

Future Brands India Limited, a brand and intellectual property rights

development corporation and Future Human Development Limited, an

educational and manpower training company with campuses in Ahmadabad,

Bangalore and Kolkata that offers degree programs in association with IGNOU.

Over the years, the group has also developed successful partnerships

with Indian and foreign companies. The group has partnered with Tata Group to

operate the brand T24 as a telecom service provider for its customers. It also

operates rural retail chain in partnership with Godrej Group. Some of the

include joint ventures includes ones with Generali, an Italy-based insurance

major which is among the three largest insurers in the Europe, Staples Inc, the

largest office stationery retailer in the world and French fashion brand, Celio.

The group also has exclusive brand license partnerships with leading global

brands like Lee Cooper, Converse, Callaway, Prince, Spalding and Wilson. Future

Group believes in developing strong insights on Indian consumers and building

businesses based on Indian ideas, as espoused in the group’s core value of

‘Indianness.’ The group’s corporate credo is, ‘Rewrite rules, Retain values.


2.3. PRESENT STATUS OF BIG BAZAAR

Retailing in India has witnessed a huge growth in the recent years.

Retailing in India is gradually inching its way towards becoming the next boom.

The Indian retail industry is largest among all the industries in India, According

to the India Retail Report 2009 compiled by research group “Images F&R

Research” rising economic growth will fuel the growth of industry and it will

touch Rs. 18,10,000 crores by 2010.

Big Bazaar is Indian personification of retail. It’s like an Indian bazaar or

mandi or mela. Big Bazaar, which has become a household name by now, has

emerged as one of the prominent organized retailing player in Indian arena. It

has been successful in establishing a chain of shopping malls in various cities of

India, reflecting the look and feel of Indian bazaars at their modern outlets

targeting higher and upper middle class customers with a strong distribution

network.

Big Bazaar faces a formidable competition from the unorganized sector.

Change in consumer behavior, intensification of competition with the

emergence of new players has made it difficult to achieve the forecasted

success. An insight into unorganized retailing reveals that it enjoys higher


margin due to many reasons including low operational cost, and low taxations.

Being aware of the threats and opportunities present in the Indian retailing, the

top management at Big bazaar planned various strategic alternatives. Big Bazaar

has huge promotion budgets. The biggest idea behind all advertisements is to

prompt people to do bulk shopping. There are two types of promotional

strategies of big bazaar. One is the holistic advertisement which promotes the

brand and creates awareness among people. Other type of promotion is the

particular store oriented promotion. There are promotional efforts even inside

the store.

Big Bazaar ensures that no other kirana store / departmental store are

offering considerable discount compared to its own price. This helped it Big

Bazaar in being the "value for money" store. Strategic Decisions Taken to Build

the Big Bazaar Brand. Indian customers prefer to purchase grains, grams, etc.,

after touching them, so it’s better not to sell in polythene packs. Big Bazaar has

counters where you can touch wheat, rice, sugar, etc., before purchasing.

Advertisements about schemes and offers through local newspapers, radio in

local languages, inspires customer more than the traditional ways. For Indians,

shopping is an entertainment; they come in groups, with families so Big Bazaar

offers something for every section of family. Their newspaper advertisements

are present just before launch of any new scheme. This creates aura about the

Big Bazaar brand in the minds of customers. Big Bazaar bill-boards are displayed

on prime locations in various cities as a brand building exercise. They display the

catch-phrases now-a-days. For a retailer, location is one of the most important

things. The strategic decisions to secure spaces before other retailers join in

have resulted in creating early presence in market.


2.4. FUNCTIONAL DEPARTMENT OF BIG BAZAAR

y/


2.6. PRODUCT AND SERVICES PROFILE OF THE ORGANISATION COMPETITORS

A. DEPOT B. NBD (New Business Development)

1)General Books 1)Watches2)Office Stationary 2) Fashion Jewellery 3)Children Stationary 3)Sunglasses4) Film’s VCD’s and DVD’s 4) Car Audio System

C. Mobile Bazaar1. All kinds of Mobile handset ranging from Rs 10,000 to 25,000 of different company.2.All Mobile Accessories3.All Prepaid & Postpaid SIM Cards4.Codeless & Landlines Phone

D. Shringar1.Bangles2.Jewellery Set3.Bracelets4.Hair Accessories5.Bindies6.Chains

E. Plastics,Utensils,Crockery Plastics1.Buckets2.Casseroles3.Containers4.Boxes5.Flasks6.Bowls7.Jugs & Sippers8.Bottels & Mugs

Utensils1.Plates,Bowls,Glasses2.Nonstick Cookware’s3.Kitchen Tools4.Tiffin Boxes


Crockery1.Crockery Cutlery2.Table Material/Napkins3.Dinner Sets4.Wine, Juice Glasses

F. Luggage1. Travel Bags2. Trolleys3. School & College Bags4. Suitcase.

G. Infants Section1.Shirts2.Baniyans3.Jhabas4.Vests5.Bibs Feeding6.Bed Items7.Baba Suits & Frocks8.Diapers & Pampers9.Other Baby Accessories

H. Toys Department1. Soft Toys2.Board Games3.Dolls4.Educational Toys5.Remote Cars & Bike6.Sport Items: Cricket Bats, Balls, Badminton & Tennis Rackets, Hockey Bats etc.

I. Food BazaarBeverages1.Soft Drink2.Mineral Water3.Health Drink4. Fruit Juice

Staples Dept.1.Pulse, Rice, Wheat.2. Sugar, Salt & Atta3. Cooking Oils, Masala Items.4. Dry Fruits5. Ready to Cooks food & Mixes.

Electronics Bazaar1.Televisions, DVD’s Player2.Home Theater System3.Refrigirator4.Washing Machine5. Microwave, Owens6.mixer, Iron & Grinder


CHAPTER 3: DISCUSSION ON TRAINNING


3.1. STUDENT WORK PROFILE

Inward stock register: For stock coming in.

Outward stock register: For stock moving out (expired or damaged).

Barcode register: To provide a barcode to particular product in case there is

any difference between barcode on the product and barcode feed for that

particular product in the system

Damage register: Record of damaged material or expired product returned

from the floor.

Security inward register: Entry of lorry at security gate

Security outward register: Exit of lorry at security gate

GRN register: Goods receiving note is the no provided to vendor that

confirms that particular order having particular purchase order no has been

received and GRN no is allotted to it.

Discrepancy note register: For any sort of difference in purchase order and

stock delivered.


Warehouse to floor: From ware house different promoters and team

members take their products to floor as and when required keeping in view the

offers prevailing for particular day and products required by customers. These

are then put up on the shelf space allotted for particular product. These

products are then available to customers for purchase.

Things to be checked at time of GRN:

1. Vendor should raise a tax invoice if any tax is charged

2. Invoice should contain a proper TIN number

3. Party name & address should with PO

4. Tax rates mentioned on PO must be in agreement with that on

invoice

5. Security inward should be there on the invoice

6. PO should be attached with invoice (GRN not required)

7. Discrepancy note should be attached for any quantity shortage with

acceptance of the vendor/transporter

8. GRN must be mentioned on the invoice


9. Tax bifurcation should be properly mentioned on the invoice.

3.2. KEY LEARNING

.1 To understand and have HAND ON experience of Inbound and Outbound

logistics system of Big Bazaar.

.2 To understand the inventory management of Big Bazaar.

.3 To understand how proper inventory management help in profit

maximization.

.4 To analyse the 7P of marketing in accordance with big bazaar retail store.

.5 To provide suggestion to improve the operation and profit maximization.


CHAPTER 4: STUDY OF SELECTED

RESEARCH PROBLEM


4.1. STATEMENT OF RESEARCH PROBLEM:

A problem is:

(1) Any significant, perplexing and challenging situation, real or artificial, the solution of which requires reflective thinking;

(2) A perplexing situation after it has been translated into a question or series of questions that help determine the direction of subsequent inquiry.

ELEMENTS OF A RESEARCH PROBLEM:

The term research problem implies that an investigation, inquiry or study is to be conducted, or that the problem is ready for investigation, inquiry or study. There are certain elements that a problem must possess before it becomes a research problem ready for investigation.

. AIM or PURPOSE OF THE PROBLEM FOR INVESTIGATION. This answers the question “Why?” Why is there an investigation, inquiry or study?

THE SUBJECT MATTER OR TOPIC TO BE INVESTIGATED. This answers the question “What?” What is to be investigated or to be studied?

THE PLACE OR LOCALE WHERE THE RESEARCH IS TO BE CONDUCTED. This answers the question “Where?” Where is the study to be conducted?

THE PERIOD OR TIME OF THE STUDY DURING WHICH THE DATA ARE TO BE GATHERED. This answers the question “When?” When is the study to be carried out?


POPULATION OR UNIVERSE FROM WHOM THE DATA ARE TO BE COLLECTED. This answers the question “Who?”Or “From whom?” Who are the respondents? From whom are the data to be gathered? In formulating the title of a research inquiry, the aim is usually omitted and sometimes the population is not included.


4.2 STATEMENT OF RESEARCH OBJECTIVE

The purpose of research is to discover answer to question through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which is not been discovered as yet. Through each research study has its own specific purpose, we may think of research objective as falling into a number of following broad groupings:

To gain familiarity with a phenomenon or to achieve new insight in to it (studies with this object in view are termed as exploratory or formulative research studies);To portray accurately the characteristics of a particular individual, situation or a group (studies with this object in view are known as descriptive research studies);To determine the frequency with which something occurs or with which it is associated with something else (studies with this object in view are known as diagnostic research studies).


4.3. RESEARCH DESIGN AND METHADOLOGY

Research Design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.

Research Design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data.

Research design is needed because its facilitates the smooth ailing of the various research operation, thereby making research efficient possible yielding maximal information with maximal expenditure.

Research design used in this project is single cross-sectional design where one sample is drawn from a population of interest. In this research design a cross sectional study is concerned with a sample of elements from a given population. Data on a number of characteristics from the sample elements are collected and analyzed.

PREPARING THE RESEARCH DESIGN:

It is appropriate for a particular research problem, involves usually the consideration of the following:

The means of obtaining the information;The availability and skills of the researcher and his staff;The time available for research;The cost factor relating to research, i.e., the finance available for the purpose;Explanation of the way in which selected means of obtaining information will be organized and the reasoning leading to the selection.


RESEARCH METHADOLOIGY:

A research process is consist of stages or steps that guide the project from its conception through the final analysis, recommendation and ultimate action. The research process provides a systematic, planned approach to the research project and ensures that all aspect of the project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question.

INTRODUCTION:

This chapter aims to understand the research methodology establishing a framework of evaluation and revolution of primary and secondary research. The technique and concept used during primary research in order to arrive at findings, which are also dealt with and leads to logical deduction towards the analysis and result.

1. Primary Data:- a. Personal interview with dealers and users of tractors has

been used a survey technique for collecting data. The dealers of different branches of tractor were also enquired about question depending on circumstances. The survey has been made by using primary data and secondary data.

b. The primary sources consist of information collected from dealers of different branches and tractors owners and agriculturist. The secondary data has been collected from encyclopedias, survey of Indian agriculture, Technical journals and news paper report.

2. Secondary Data:- These are the sources that consist of data, which have been

collected and compared for some other purpose. The secondary sources consist of readily available components and already compiled statistical statement and reports whose data may be used for study. Secondary data have been collected from many sources. The major sources of secondary data are given below.

Reports/Records Websites


CHAPTER 5: ANALYSIS


5.1. ANALYSIS OF DATA:

7P Analysis of Big Bazaar Retail Store:

The 7 P’s allows a retailer to analyze and strategize his business keeping in

mind the most critical part of marketing in operating his business. As products,

markets, customers and needs change rapidly, a retailer must continually revisit

these seven Ps to make sure he is on track and achieving the maximum results

possible in today's marketplace.

The 7P’s can be diagrammatically shown as:


PRODUCT PRICE

PLACEPROMOTION

Product mix:

To find out what customers want & need & then develop a product

to meet the need of the potential customers. To keep analyzing if the

current mix of products and services are appropriate and suitable for the

market and the customers of today.

Big Bazaar offers a wide range of products which range from

apparels, food, farm products, furniture, child care, toys, etc. Products of all

the major brands are available at Big Bazaar. Also, there are many in house

brands promoted by Big Bazaar.


PEOPLE

PHYSICAL EVIDENCE

PROCESS

Product mix at big bazaar:


Apparelsformal wears

party wears

ethnic wear

casual wears

accessories

kids wear

sarees

night wears

undergarments

fabric and cut pieces

Product mix continues:


Electronic BazaarT.V.

washing machine

refrigerators

microwaves

A.C.

coolers

home appliances

kitchen wares

computer accessories

Price:

A product is only worth what a customer is prepared to pay for it.

The price needs to be competitive, but not necessarily the cheapest. The tag-line

is "Is se sasta aur accha aur kahin nahi". They work on the model of economics

of scale. There pricing objective is to get "Maximum Market Share". The various

techniques used at Big Bazaar are:

Value Pricing (EDLP-Every Day Low Pricing): Big Bazaar promises

consumers the lowest available price without coupon clipping, waiting for

discount promotions, or comparison shopping.

Promotional Pricing : Big Bazaar offers financing at low interest rate. The

concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional

tool. Big Bazaar also caters on Special Event Pricing (Close to Diwali, and Durga

Pooja).

Differentiated Pricing : Time pricing, i.e., difference in rate based on peak

and non-peak hours or days of shopping is also a pricing technique used in

Indian retail, which is aggressively used by Big Bazaar

Bundling : Selling combo-packs and offering discount to customers. The

combo-packs add value to customer.


Price comparison:

PRODUCT MRP PRICE AT BIG BAZAAR

OLIVE OIL 1 ltr Rs. 350 Rs. 290

Saffola rice 1 kg Rs. 85 Rs. 78

Monza shoe rack Rs. 11000 Rs. 6599

Yardey body deo Rs. 140 Rs. 125

Glen glass top gas stove Rs. 8490 Rs. 7217

Sandwitch toaster Rs. 199 Rs. 149

Philips cfl Rs. 230 Rs. 205

American tourister space and anchor Rs. 6100 Rs. 3050

Boost Rs. 215 Rs. 194


Place:

The product must be available at the right place (Product category), at

the right time (time you sell your product), and in the right quantity (enough

stock). The place in which your business operates can be the deciding factor in

the success or failure of the business. Provide facilities like free parking ensures

the ease of accessing the store. Once you have a good location, it becomes

difficult to replicate the same and it becomes the competitive strength.

There are now 148 Big Bazaar stores in 80 cities and towns across India.

Most of the Big Bazaar stores are multi-level and are located in stand-alone

buildings in city centers as well as within shopping malls.

In Gurgaon there are two Big Bazaar stores one at Sahara Mall and other

one at Ambience mall. Both these malls are among the busiest malls in Gurgaon

and are easily accessible. The following map shows the location of big bazaar

stores in different parts of our country.


Promotion:

This is the way in which you communicate to your potential customers

about your product. This can be done in a number of ways, which includes your

brand image, advertising, special offers. Small changes in the way the products

are promoted and sold can lead to dramatic changes in results.

Experiment with different ways of advertising, promoting, and selling the

products and services is required for promotion. A particular sales or marketing


method might stop working after sometime and it become essential to

continually look for new improved ways to promote and market the product in

front of the customer.

Big Bazaar started many new and innovative cross-sell and up-sell

strategies in Indian retail market. The various promotion techniques used

at Big Bazaar include

"saal ke sabse saste teen din"

Future Card (the card offers 3% discount)

Brand Endorsement by M. S. Dhoni

Great Indian shopping festival (16th april -15th may)

Advertising has played a crucial role in building of the brand. Big

Bazaar advertisements are seen in print media, TV, Radio (FM) and road-side

bill-boards.

Various zero interest finance schemes

Announcing various festivals to promote sales of particular section,

for example: toys festival, crockery festival etc.



People:

The reputation of the brand rests in the people’s hands. You must

therefore ensure that all your people are appropriately trained, well motivated

and have the right attitude. People does not only include the people in your

business , but also the people that you use for your business.

The ability to select, recruit, hire and retain the proper people, with the

skills and abilities to do the job you need to have done, is more important than

everything else put together. Many customers are unable to separate the

products they buy from the person who sells it to them. This goes to show the

importance of your people in relation to customer’s perception.

The level of after sales support and advice provided by the retailer is one

way of adding value to what is sold , and will give a competitive advantage over

others sellers of similar product. Many of the best business plans ever


developed do not see the light of the day as the people who created them

could not find the key people who could execute those plans.

The salient features of staff of Big Bazaar are:

Well-trained staff, the staff employed by Big-Bazaar is well-suited

for modern retail.

Well-dressed staff improves the overall appearance of store.

Employees are motivated to think out-of-the-box. Retail sector is in

growth stage, so staff is empowered to take innovative steps.

Employs close to 10,000 people and recruits nearly 500 people

every month.

Use of technology like scenario planning for decision making.

Multiple counters for payment, staff at store to keep baggage and

security guards at every gate, makes for a customer-friendly atmosphere.

The customer profile are also important coz the product they buy

depends largely on customer profile i.e. they belong to middle class, upper

middle class or rich families.


Such awards are provided to employees in order to encourage them and to

motivate them to work effectively and efficiently.

Process:

The process that you go through and the behavior of those who deliver

the products are crucial to customer satisfaction. Issues such as waiting times ,

the information passed onto customers are vital factors when trying to

maintain 100% satisfaction.


Processes must help the customers get what they want. E.g. What

payment methods are in place that makes it easier or quicker for customer to

pay for service?

Always keep customers informed. This can be done at the store or

through faxes and emails. By keeping in contact with the customers the retailer

can avoid problems of negative feedback etc. This also does the world of good

for your brand image. Customers will view this as an extra value added service.

The goods' dispatch and purchasing area has certain salient

features which include:

Multiple counters with trolleys to carry the items purchased.

Proper display / posters of the place.

Home delivery counters also started at many places.

Physical evidence:

This is the intangible part of the business mostly concerned with services

as they cannot be seen. Intangible is often used to describe services as they

cannot be touched like a product. This is important because, fundamentally you

are selling a product, but in order for you to be able to price your goods at the


right level, you will also be selling the service the buyer will receive. It deals

with the final deliverable or the display of written facts.







Future Group Project

Documents